President Obama on Small Biz Sat

November 28, 2011

A letter from President Obama…

November 23, 2011

From the mom-and-pop storefront shops that anchor Main Street to the high-tech start-ups that keep America on the cutting edge, small businesses are the backbone of our economy and the cornerstones of our Nation’s promise. These businesses create two out of every three new jobs in America, helping spur economic development in communities across our country and giving millions of families and individuals the opportunity to achieve the American dream. Through events such as Small Business Saturday, we keep our local economies strong and help maintain an American economy that can compete and win in the 21st century.

My Administration is committed to helping small businesses drive our economy toward recovery and long-term growth. I have signed into law 18 tax cuts for small businesses, including tax credits for hiring unemployed veterans as part of my American Jobs Act. The Small Business Administration had a record year, providing more than 60,000small businesses with over $30 billion in lending support. And my Administration has helped provide 1,000 high-growth businesses with $2.6 billion more in capital, while also launching Startup America, an initiative to strengthen access to capital and mentoring while reducing barriers to growth for small businesses.

Through these and other initiatives, we are supporting the entrepreneurs and small businesses that are the engine of our prosperity and a proud reflection of our Nation’s character. When small businesses do well, communities flourish and our economy grows.

America was built on the hard work and creativity of our people. On this occasion, we reaffirm our support for America’s small business owners and their staff, and we celebrate the proud tradition of entrepreneurship they represent.

Filed Under: news

Buy Local, Buy Small

November 22, 2011

In this week’s Must Know:

  • Buy Local, Buy Small
  • Training the Trainer: Web Marketing
  • The Goodies: information on important opportunities like trainings, funding, scholarship programs.

Buy Local, Buy Small

Our staff is grateful for its CAMEO family – our funders, our members and especially for all of the businesses and jobs that you helped create. So we’d like to celebrate our entrepreneurs, like Jessica McGinty (see pic left, read our latest impact story about taming curls while making a profit). The way to thank them during the upcoming holiday season is to buy local and buy from small business people.

Two of our sister organizations, AEO and WIPP (Women Impacting Public Policy), are national sponsors of Small Business Saturday, an event that drives shoppers to local, independently-owned merchants. It is a national initiative that marks a day to support the local business that create jobs, boost the economy and preserve neighborhoods around the country – something that CAMEO and its members do every day. Learn how you can get involved and support the national recognition. Check out the small biz stats.

Continue the local love with Buy Local Week (November 25 thru December 4) sponsored by our colleagues at BALLE. A shift of just 10% of holiday spending toward locally owned businesses has the potential to create an impact of billions in economic activity in just two months.

Training the Trainer: Micro-Marketing

Micro-businesses need help with marketing. As a business coach/mentor/trainer, you will be interested in this new tool that helps small organizations market themselves online easily, quickly and effectively.

If you are involved in training entrepreneurs for your organization, join CAMEO on December 1, 2011 from 10:00a.m.-10:45a.m. for webinar on Pubfish. Pubfish allows micro-businesses to create rich “pubs” that can be posted to Facebook, Twitter, Stumbleupon etc. and of course emailed to customers and prospects. Pubs are fast to make, easy to socialize and most of all measurable [who received it, who commented on it, who added to it, what are the trending topics, who reposted it etc.] Pubfish is designed to help micro-business and not-for-profits build sales.

Register for the webinar and you will be given the login information.

The Goodies

New opportunities for trainings, conference information, funding, scholarships, and other information that have crossed our desks since the last Must Know. A running tab of current Goodies is on the CAMEO website.

Job Opening: Opportunity Fund has openings for a Small Business Outside Sales / Loan Consultant and Small Business Customer Service Representative. Visit our jobs page for other available positions in the industry.

Advocacy Action: Support Individual Development Accounts. Our colleagues at CFED are asking organizations to sign a letter that opposes cuts to the matched savings program. The deadline to add your organization is close of business today Tuesday, November 22 9pm ET. It only takes a minute.

Capacity Building Grants for Consulting: Three consulting grants are available for Women, Green and General Microenterprise Development through several organizations who are working with Friedman Associates – CAMEO member, Women’s Initiative is one of those organizations. Applications are due November 30, 2011.

Webinar: Building the Right Funding Model: Building upon years of primary research and consulting experience with dozens of nonprofit clients, The Bridgespan Group has developed an approach for how an organization can identify and develop a funding model that will allow it to achieve its programmatic aspirations. The Stanford Social Innovation Review hosts this webinar on November 30, 2011 at 11:00a.m. The cost is $49. Learn more and register.

Free Webinar: CAMEO member Catherine Marshall presents How to Build Your Own Coalitions and Social Movements in Thursday, December 1 at 12:00p.m. PT. The webinar is sponsored by the Irvine Chamber of Commerce. Register for the participation information.

Free Webinar: Join CFED for a webinar on Thursday, December 1 from 12-1:30 p.m. PT that will provide background on the Bank On initiative, discuss highlights of the first-ever Scan of the Bank On Field, and offer a brief, hands-on tutorial for using some of the most exciting features of the revamped website.

Free Webinars on Measuring Success by Field: Free webinars to learn how to adopt data analytic techniques long used by the private sector to improve performance. The December 1st and December 9th webinars will help you use benchmarking tools in detail to understand the state of the industry and assess your program’s performance. Register today!

Webinar: BALLE hosts Move Your Money, Then Make it Work for Your Community: Partnering with Local Banks and Credit Unions. Register for the webinar on December 6, 10:00a.m. – 11:00a.m. PT. “Move Your Money” efforts have gained ground, directing individuals and businesses to move their assets to local financial institutions. But what happens next to make our capital work deeply for our communities?

For your clients: CARAT is providing technology training programs for free to small businesses in California. Check out the schedules for November 2011, December 2011 and January 2012.

Filed Under: Must Know

Jessicurl

November 22, 2011

The story of how Jessicurl was born is best told by its owner, Jessica McGuinty.

Until the time I was 14 I had thick yet fairly straight hair. When puberty struck, my hair grew more and more coarse and eventually started to curl. I was mortified and at a total loss for how to deal with it. The only advice my straight haired mother could offer was “Go brush your hair!” , which is the WORST thing to do to curly hair! My dad was more sympathetic, as he’s the one who gave me the curls, but his motto was “bigger is better.” To a self-conscious 14 year-old who didn’t want to stand out, that wasn’t very helpful either.

As my hair grew bigger and bigger, my peers grew meaner and meaner, calling me such names as Mushroom Head…. As I grew up, my hatred of my hair didn’t dissipate. Finally in 2002 I figured there had to be a better way, and typed “curly hair” into Google to see what the internet had to offer.

The first thing that came up was naturallycurly.com – an entire community of curly haired people who shared the same struggles as I did! Who knew??

I immersed myself in their Curl Talk message board and quickly traded hair tips and horror stories. Much of what my cyber-friends talked about, however, were products. I bought any product that someone raved about, most of which didn’t do anything to make me like my hair better. Many of them actually made my hair worse, drying it out with alcohols and stripping the natural oils with harsh detergents.

One day I came across a very basic recipe for a hair gel made out of flax seeds. I remember thinking, “Wow, how cool would it be if I could make my OWN hair gel? I sure would save a lot of money!” I tried it, and the results were less than stellar. But this time I was inspired, , so I tweaked the recipe, by adding other natural ingredients that I had learned are good for curly hair. The results were nothing short of miraculous. I was shocked that FINALLY my hair looked like I wanted, and I had made the product on my stove!!

With much exuberance, I went back to the NaturallyCurly.com message boards and excitedly shared the recipe with my new found friends. After posting my recipe I was flooded with emails from curly headed members asking if they could just buy some of the magic potion from me, as they really didn’t feel like making it.

It was September 2002 and Rockin’ Ringlets Styling Potion was born. She decided not to launch with one product, so she developed Gelebration Spray and Awe Inspiraling Spray. Over the course of the first year, she heard from her customers “I love styling products, but need a conditioner.” So within six months she launched a conditioner. By the end of her first year, she had three conditioners, a shampoo and the styling products. All this innovation and production was being run out of her 600 square foot apartment in Berkeley.

She knew she needed more space. She also wanted to pay her employees a living wage. She knew that wasn’t going to happen in the Bay Area.

Jessica’s cousin, Cathleen went to Dell’Arte International, a performing arts school in Humboldt County to become a clown. The two were close, so Jessica visited Humboldt often while in high school. She loved it. By the time she was 20, she knew she wanted to move to Humboldt. At the time, waitressing was the only job option in Humboldt and that’s not what she wanted to do, so she moved to the Bay Area.

So when Jess decided to expand, she thought, “what the hell, let’s go to Humboldt.” She liked the lower cost of living, the trees and the people. She had no idea how much community support for small business existed. She didn’t know about Northcoast SBDC. She found them through a basic google search for “moving your business to Humboldt.”

When she went to look for a place to live, she also visited the SBDC. One of the first people she met in Humboldt was someone at the SBDC. A year after she started her business, she moved north.
Initially, Jessicurl was run out of the Humboldt kitchen. In June 2004, the company moved to its first factory. The company was way under-capitalized – the credit cards paid for the move. The SBDC helped her write business plan so she could get a loan from Arcata Economic Development Corporation to buy equipment.

Jess says that the available business resources are “mind-blowing” and the SBDC has been a big part of her success.

Jessicurl began marketing all over the world, obtained financing, expanded production, and grew a solid and loyal customer base. A 2006 appearance on Rachel Ray’s show to give curly hair tips helped to spread the word about Jessicurl. Throughout the expansion and growth, Jessicurl faced additional challenges that many growing businesses face – international trade, quality control, calculating cost of goods sold, tax implications, marketing, human resources, and financing/capital. She also sought to devise a growth strategy to capture market share, to pay for her increasing overhead and to finance her rapid expansion without imploding.

Jess turned to the North Coast SBDC again and its advisors and one in particular Stilson Snow. Jess would arrive at his office with a crisis and start to cry. She calls Stilson her business therapist. He has talked her down from the ledge when things were difficult. Stilson coached the company on cash flow and on understanding their costs. He arranged for additional SBDC expertise to be brought to bear on issues such as managing people, quality control, and financial strategies such as raising capital.

Recent planning has focused on how to play to Jess’ likeability and strength in marketing while bringing in other talent to handle other things. Most recently, Jess took on a partner and Stilson helped her with the whole process.

In 2007, Jess joined the board of directors of the North Coast Small Business Resource Center, the host of the SBDC program in Humboldt and Del Norte Counties. She likens her participation to the Hair Club for Men: “I’m not just on the board; I’m a client!”

“We wouldn’t have gotten nearly this far if we hadn’t taken advantage of what the SBDC has to offer,” said Jess. “We needed so much to work on the day to day stuff. It wasn’t just the direct services provided, either. It was the extent to which SBDC staff reached out on our behalf. It was amazing.”

During the first years in business, Jessicurl’s sales increased by 450% and she now employs six people full-time and two part-time. She grew a healthly 20% in 2010.

“Through the years I’ve met thousands of curlies… and it’s always inspiring to hear how similar our struggles are,” says Jessica. “The path to loving our curls is not easy, but many of us have made it and many are in the process. I’m honored to be a part of that journey. You have the right to remain curly.”

Filed Under: Success Story

Youth Zeitgeist and Us

November 22, 2011

CAMEO’s Viva! symposium gets some ink!

In this week’s Must Know:

  • Small Business Saturday
  • The Goodies: information on important opportunities like trainings, funding, scholarship programs. This week’s highlight is Valley Economic Development Center hosts a bunch of CAMEO members for Where’s the Money? Access to Capital Business Expo on November 19, 2011 in San Francisco.

Small Biz Zeitgeist

A recent essay in The New York Times – “Generation Sell” – explores today’s youth culture, what they value and how that manifests itself in society. And guess what my fellow micros… the really hip thing to do is open your own business!

The small business is the idealized social form of our time. Our culture hero is not the artist or reformer, not the saint or scientist, but the entrepreneur…. The characteristic art form of our age may be the business plan.

Read the article. Think about what this means for your organization and what steps you might take to address the new zeitgeist. THEN comment on our Facebook page (like us while you’re there), so that we can learn how to take advantage of the opportunity and not risk looking like a hippie in a hipster world.

Now if only the federal government would get with it. The first of the FY2012 spending bills came out the conference committee today – the one that funds the U.S.D.A has $24.3 million for RBEG in FY2012 – a 38% cut from 2010 funding for rural business support.

Small Business Saturday

First there was Black Friday, then Cyber Monday. Now, Small Business Saturday is an event that drives shoppers to local, independently-owned merchants. Small Business Saturday is a national initiative that marks a day to support the local business that create jobs, boost the economy and preserve neighborhoods around the country – something that CAMEO and its members do every day. Learn how you can get involved and support the national recognition. Check out the small biz stats. Two of our sister organizations, AEO and WIPP (Women Impacting Public Policy), are national sponsors!

The Goodies

New opportunities for trainings, conference information, funding, scholarships, and other information that have crossed our desks since the last Must Know. A running tab of current Goodies is on the CAMEO website.

CAMEO Member Event: Valley Economic Development Center hosts Where’s the Money? Access to Capital Business Expo on November 19, 2011 from 8:00a.m – 2:30p.m. at the Hyatt Regency in San Francisco. Joining VEDC are other CAMEO members and many of our banking partners. Register for $10.

Advocacy Action: Support Individual Development Accounts. Our colleagues at CFED are asking organizations to sign a letter that opposes cuts to the matched savings program. The deadline to add your organization is Tuesday, November 22 9pm ET.

New Policy Guide: CFED released a new report – With a Stroke of a Pen: Two Dozen Low-cost, Politically Viable State Policy Ideas to Increase Financial Security and Opportunity in Tough Fiscal Times, which presents 24 low-cost, politically-viable policy ideas to increase financial security and opportunity in fiscal times.

Free Webinars on Measuring Success by Field: Free webinars to learn how to adopt data analytic techniques long used by the private sector to improve performance. The December 1st and December 9th webinars will help you use benchmarking tools in detail to understand the state of the industry and assess your program’s performance. Register today!

For your clients: CARAT is providing technology training programs for free to small businesses in California. Check out the schedules for November 2011, December 2011 and January 2012.

Capacity Building Grants for Consulting: Three consulting grants are available for Women, Green and General Microenterprise Development through several organizations who are working with Friedman Associates – CAMEO member, Women’s Initiative is one of those organizations. Applications are due November 30, 2011.

Webinar: Building the Right Funding Model: Building upon years of primary research and consulting experience with dozens of nonprofit clients, The Bridgespan Group has developed an approach for how an organization can identify and develop a funding model that will allow it to achieve its programmatic aspirations. The Stanford Social Innovation Review hosts this webinar on November 30, 2011 at 11:00a.m. The cost is $49. Learn more and register.

Facilitator Training: Learn how to implement Ice House Entrepreneurship Program in your community. From young adults to higher education and workforce training, this highly interactive and engaging program is redefining entrepreneurship education in America. The training is Tuesday, December 13, 2011 at 6:00 PM – Thursday, December 15, 2011 at 3:00 PM in Kansas City, MO. Register here.

Filed Under: Must Know

Viva!

November 10, 2011

Reminder: tomorrow is a ‘training for the trainer’ free webinar to help you understand what new health care reform means for your clients. Thursday, November 10, 2011, 10:00-11:00 a.m. Learn more and register.

In this week’s Must Know:

  • Viva!
  • Small Business Saturday
  • The Goodies: information on important opportunities like trainings, funding, scholarship programs. This week’s highlight is the Small Business Revolution Summit on November 15 in North Hollywood. The summit’s goal is to devise the criteria for what it means to be pro-small business. CAMEO has led several brainstorming calls about technical assistance. Register.

Viva!

This week, about 50 women of all shapes, sizes (I’m 4’10″ in my boots), colors and ages gathered at the Los Angeles office of the San Francisco Federal Reserve for a heavy dose of inspiration and insightful advice. As Forescee Hogan-Rowles, (bio) the C.E.O. of Community Financial Resource Center, summed it up: Be informed; Be relentless; Have a Plan (yes with a capital ‘P’); Write your own Plan; Don’t do it on your own. You’ve probably seen/heard this advice before, but the energy and camaraderie in the room really hammered it into the heart. I’ve posted my notes and resource links from the conference. Share them!

You can see photos from the event on our facebook page, tag yourself if you attended the symposium and “like” us while you’re there.

We had several people approach us to help plan for for 2012. If you would like to be on the Viva! committee, email Shufina.

P.S. Claudia is at a Federal Reserve in D.C. today for the Small Business and Entrepreneurship during an Economic Recovery Conference. Claudia was a discussant on a panel – The Importance of a Robust Entrepreneurial Ecosystem. Just so happens that the panel after that was about minority- and women-owned businesses with two new papers: Gazelle Index: New National and On the Earnings and Employment of Female Hispanic Entrepreneurs in the 2000s.

Small Business Saturday

First there was Black Friday, then Cyber Monday. Now, Small Business Saturday is an event that drives shoppers to local, independently-owned merchants. Small Business Saturday is a national initiative that marks a day to support the local business that create jobs, boost the economy and preserve neighborhoods around the country – something that CAMEO and its members do every day. Learn how you can get involved and support the national recognition. Check out the small biz stats. Two of our sister organizations, AEO and WIPP (Women Impacting Public Policy), are national sponsors!

Help throw Small Business Saturday over the 2 million “like” mark on Facebook. We “like”-ed Small Business Saturday. Help support the communities and small nusinesses you love and “like” the second annual Small Business Saturday: Facebook.com/smallbusinesssaturday!

The Goodies

New opportunities for trainings, conference information, funding, scholarships, and other information that have crossed our desks since the last Must Know. A running tab of current Goodies is on the CAMEO website.

www.healthcoverageguide.orgFree Webinar on Health Insurance Laws: Help your clients understand the new health care reform. Our friends at Small Business Majority recently launched the California Health Coverage Guide in English and Spanish that provides California small business owners with objective, step-by-step information on how to navigate the healthcare market since the passage of national healthcare reform. This webinar for CAMEO members will walk you through the extensive website to help you understand this new tool available to California entrepreneurs. The webinar is Thursday, November 10, 2011 from 10:00-11:00 a.m. Learn more and register.

California White House Conference Call: Monday, November 14th at 1:00 PM PDT. White House officials will provide a series of updates, including the American Jobs Act, the Fiscal Year 2012 Budget, and President Obama’s “We Can’t Wait” series of Executive actions. Please RSVP with your name, organization, and city, state. Dial In: (800) 553-0349. Passcode Title: California American Jobs Act Call. This call is off the record and not for press purposes.

Small Business Revolution Summit on November 15 in North Hollywood. The summit’s goal is to devise the criteria for what it means to be pro-small business. CAMEO has led several calls about technical assistance. Other issue areas include access to capital, role of government, and regulation. Learn more and register.

Free Webinar on Measuring Success by Field: Free webinars to learn how to adopt data analytic techniques long used by the private sector to improve performance. On November 15th, you’ll learn how microTracker can help you explore the size and diversity of the field; assess microloan lending performance; and evaluate the cost of microenterprise. The December 1st and December 9th webinars will help you use benchmarking tools in detail to understand the state of the industry and assess your program’s performance. Register today!

Federal Reserve Symposium: Addressing Poverty Through Asset Building, Tuesday, November 15, 2011, 8:00 a.m. to 4:00 p.m. at the Burbank Airport Marriott. Learn more and register.

For your clients: CARAT is providing technology training programs for free to small businesses in California. Check out the schedules for November 2011, December 2011 and January 2012.

CAMEO Member Event: Valley Economic Development Center hosts Where’s the Money? Access to Capital Business Expo on November 19, 2011 from 8:00a.m – 2:30p.m. at the Hyatt Regency in San Francisco. Joining VEDC are other CAMEO members and many of our banking partners. Register for $10.

Capacity Building Grants for Consulting: Three consulting grants are available for Women, Green and General Microenterprise Development through several organizations who are working with Friedman Associates – CAMEO member, Women’s Initiative is one of those organizations. Applications are due at the end of November.

Filed Under: Must Know

¡Viva! 2011 Celebrated Women Entrepreneurs

November 9, 2011

This week, about 50 women of all shapes, sizes, colors and ages gathered at the Los Angeles Fed for a heavy dose of inspiration and insightful advice. As Forescee Hogan-Rowles, (bio) the C.E.O. of Community Financial Resource Center, summed it up: Be informed; Be relentless; Have a Plan (yes with a capital ‘P’); Write your own Plan; Don’t do it on your own. You’ve probably seen/heard this advice before, but the energy and camaraderie in the room really hammered it into the heart. Here are my notes from the symposium and if you scroll down to the bottom, you’ll find related resources and research.

Advice from Sheila Brooks:

  • If the U.S. women-owned firms were a country, it would have the 5th largest GDP.
  • The earning power of women in 2014 is projected to be $18 trillion.

Women’s economic power necessitates a change in the conversation at they policy level.

Businesses owned by women of color

  • Grew five times faster than other business
  • 2.3 million businesses
  • 1.7 million employees
  • $235 billion a year in revenue

So it makes sense to foster knowledge and skills, but women of color are under-served and at worst ignored. Very little research exists.

What prevents women of color from growing their businesses? Race and ethnicity are unique obstacles that must be overcome. Five obstacles

  • Human resources – finding the right talent
  • Cash flow and capital
  • Market scope and customer relations
  • Access to decision makers – strategic partnerships, networking and relationship building
  • Growth and sustainability

The change in the economy means a shift in paradigm from business as usual to re-inventing your business over and over.
We tend to chase the vision, not the money.
If we invest in employees and clients, they will invest in us.

How to overcome obstacles: innovation, creativity and strategic planning.

  • Don’t sell what you have, sell what clients want
  • PLAN d- 42% of business don’t have a plan
  • Re-write the plan every quarter
  • Write your own plan
  • Be able to respond to change- it’s a competitive advantage to be able to be flexible.
  • Continue to be a risk taker.
  • Connect – women are good at it – but need to think about bridging, not just bonding to close the deal

Donyielle Holley does visualization exercises with her clients to transition to the proper mind set and visualize success. She says don’t let obstacles define who you are. Traditional entrepreneurship training needs to be tweaked to fit non-traditional clients.

Q: How can women of color widen networks to key into decision makers
Shelia: for government contracts (and good advice regardless)

  • Go to every business fair, every government event in your target area
  • Engage the small business liaison – state and municipal government employees are paid to advocate for you and do want to help
  • Stay in touch week alternating with a call and an email to keep your company front and center
  • Be memorable – it’s the little details that matter
  • Be knowledgeable about government contracting – know who is awarding what to whom and what kinds of contracts.
  • Schedule relationship building!

Gail Lara wanted more connection after she graduated from the VEDC entrepreneurship training program so she started a mentor program called The Valley Girls Grew Up. The group started with sharing what was going on with their businesses and now includes a 30-minute test marketing session, speakers, networking, goal setting, mind mapping and brainstorming. The meetings became so popular that there are now two. The collaboration resulted in Made in the Valley catalog.

Other advice:
*Mentorships are uber-valuable
*Get a Board
*Twice a year do a survey on what the customer needs
*Give everyone the incentive to be part of the solution
*Most businesses fail because of a lack of execution
*Find a partner

Resources related to ¡Viva! objectives:

Feel free to submit additional resources to CAMEO.

If you would like to be on the Viva! committee, email Shufina.

View photos from the event on our facebook page, tag yourself if you attended the symposium and “like” us while you’re there.

Filed Under: news

New Bill Helps Self-Employed Become Own Boss

November 9, 2011

CAMEO has been pushing for self-employment to be recognized as a viable option for the unemployed. The message has been heard. President Obama included it in his American Jobs Act. Today Senator Wyden (D-OR) and some of his colleagues introduced a bill that logistically smooths the way. Next week a version is expected in the House.

In a nutshell, the bill will encourage states to utilize self-employment assistance by:

  1. Allowing the long-term unemployed who remain eligible for regular or extended unemployment benefits to draw down those benefits in the form of self-employment assistance;
  2. Providing technical assistance and model language from the Department of Labor for states that create new self-employment programs; and
  3. Providing financial assistance to aid states in establishing, implementing, improving and/or administering self-employment programs.

I particularly like the last one! We will keep you posted on the progress of the bill.

The following is from the desks of Senator Wyden and company:

Wyden, Carper and Casey Bill Gives Entrepreneurs Breathing Room to Start Businesses
Self-Employment Assistance Allows Entrepreneurs to Receive Unemployment Insurance While They Start their Own Small Businesses

Washington, D.C. – As the nation’s unemployment rate continues to hover around 9 percent many unemployed Americans could be taking advantage of the opportunity to start their own small businesses if not for rules governing unemployment insurance (UI). While not every unemployed American is a would-be-entrepreneur, giving unemployed Americans an opportunity to use their skills to build their own small businesses could be an exponential job creator, finding work not just for one unemployed American but creating jobs for others.

U.S. Senators Ron Wyden (D-Ore.), Tom Carper (D- Del.) and Bob Casey (D-Penn.) have introduced the Startup Technical Assistance for Reemployment Training and Unemployment Prevention (STARTUP) Act today to promote self-employment assistance as an alternative approach.

“Being unemployed isn’t always a bad thing. For some of the nation’s most successful entrepreneurs, losing a job was an opportunity to start something new. But starting a new business takes time and focus which the current unemployment rules don’t provide.” Wyden said. “Oregon’s successful self-employment assistance program has shown that freeing a few promising entrepreneurs to focus on starting a new business versus finding a new job can yield dramatic results. Promising entrepreneurs in other states deserve the same opportunity.”

“We know that small businesses are a powerful part of fostering economic growth in America” Carper said. “Self-Employment Assistance helps our economy by providing unemployed workers with the resources they need to launch their own startups and small businesses. As Governor, I signed legislation authorizing Delaware’s participation in the Self-Employment Assistance program into law—making the First State one of just eight states to offer a this groundbreaking program to unemployed workers. Today, I’m honored to join Senators Wyden and Casey in introducing similar legislation that will encourage even more states to participate in this critically important re-employment program. By offering more workers access to this underutilized program, this bill will not only ensure that more Americans will find jobs but it will also help generate growth by fostering the next generation of startups that make our communities and economy stronger.”

“Making sure the job creators of tomorrow have the ability to get on their feet today will create jobs and speed up the economic recovery,” said Senator Casey. “This bill makes the path to self-reliance and prosperity easier for prospective entrepreneurs and will create jobs for Pennsylvanians.”

Under current rules, in order to maintain unemployment benefits, the unemployed must be actively searching for and willing to accept suitable work. Anyone who has started a new business knows that getting it off the ground is a full time job in and of itself and allowing would-be UI recipients to focus full-time on their new business vastly increases their likelihood of success.

Currently a handful of states allow a small percentage of their states unemployed to focus full time on starting their own business while drawing down their unemployment benefits in the form of self-employment assistance.

The STARTUP Act would expand eligibility for self-employment assistance to the long-term unemployed and incentivize every state to offer the program, dramatically increasing the number of potential new small businesses.

Filed Under: news

Microlending Summit Success

November 4, 2011

VIVA! Women of Color Symposium in Los Angeles on November 7. Learn more and register. Because it’s at the Federal Reserve, you must pre-register.

In this week’s Must Know:

  • Microlending Summit Success
  • Small Business Saturday
  • The Goodies: information on important opportunities like trainings, funding, scholarship programs. This week’s highlight is the Press Releases from A to Z Webinar that was held last week.

Microlending Summit Success

Leaders from 17 CAMEO microlenders gathered on Tuesday for a spirited and honest conversation about the state of microlending and what is needed to grow the field. Following are a few highlights:

The state of microlending

From 2009 to 2010 CAMEO’s member microlenders, like most banks, spent time examining their portfolios and cleaning them up. Unlike the big banks, microlenders didn’t get a bailout, so they spent much of their time restructuring and repricing their deals. The good news is that most lenders had very low default rates in recent years, the bad news is that they weren’t lending as much as they had in the past – the number of loans made in 2010 was 30% lower than in 2009.

The majority reported that lending has picked up in 2011 and will continue to grow in 2012. However, many new customers are middle class, more experienced business owners, with good credit, who were no longer being served by their banks. Some larger CDFIs are asking themselves the question: should we expand our mission of reaching lower income business owners and distressed communities to serving this new market that needs larger loans- $75-$150K- and lines of credit (LOC) If so, then CDFIs need access to the SBA’s CAPlines program as well as the accounting software to manage LOCs. This software for LOC processing is cost prohibitive for most organizations. If the costs would be shared or big banks could foot the bill, then many CAMEO members expressed interested in offering LOC’s as one way to grow.

Growing the field

Much of the conversation revolved around how to create efficiency in small loan transactions so that they better cover their costs, including the Technical Assistance needed to bring the client to loan readiness. Technical assistance was a hot topic and CAMEO’s research findings raised more questions than answers. Everyone agreed – we need to rename TA so that it better translates to Main Street. The distinction needs to be made between business assistance and credit assistance. CAMEO was asked to develop training for TA providers on core competencies in credit assistance.

Since demand is increasing, so is the need for more low cost, patient capital. CAMEO was asked to create new capital products, perhaps from a corporate sponsor a la Starbucks/OFN. Stay tuned for announcements on some exciting innovations to both increase capital and ramp up lending capacity.

These are just a few highlights of a very rich conversation. In the next few weeks we will develop a document that will outline the key issues and what CAMEO will do to respond. We are excited and inspired by the commitment and enthusiasm of our member microlenders to serve the emerging credit needs of their communities.

Small Business Saturday

First there was Black Friday, then Cyber Monday. Now, Small Business Saturday is an event that drives shoppers to local, independently-owned merchants. Small Business Saturday is a national initiative that marks a day to support the local business that create jobs, boost the economy and preserve neighborhoods around the country – something that CAMEO and its members do every day. Learn how you can get involved and support the national recognition. Check out the small biz stats. Two of our sister organizations, AEO and WIPP (Women Impacting Public Policy), are national sponsors!

The Goodies

New opportunities for trainings, conference information, funding, scholarships, and other information that have crossed our desks since the last Must Know. A running tab of current Goodies is on the CAMEO website.

Free CAMEO Webinar: Last week, we held a very successful Press Releases from A to Z Webinar. If you missed it, you can listen and watch the webinar as well as access other resources.

Free Webinar on Health Insurance Laws: Help your clients understand the new health care reform. Our friends at Small Business Majority recently launched the California Health Coverage Guide in English and Spanish that provides California small business owners with objective, step-by-step information on how to navigate the healthcare market since the passage of national healthcare reform. This webinar for CAMEO members will walk you through the extensive website to help you understand this new tool available to California entrepreneurs. The webinar is Thursday, November 10, 2011 from 10:00-11:00 a.m. Learn more and register.

Federal Reserve Symposium: Addressing Poverty Through Asset Building, Tuesday, November 15, 2011, 8:00 a.m. to 4:00 p.m. at the Burbank Airport Marriott. Learn more and register.

For your clients: CARAT is providing technology training programs for free to small businesses in California. Check out the schedules for October and November.

Capacity Building Grants for Consulting: Three consulting grants are available for Women, Green and General Microenterprise Development through several organizations who are working with Friedman Associates – CAMEO member, Women’s Initiative is one of those organizations. Applications are due at the end of November.

Advocacy Action: CAMEO as a member of the American Sustainable Business Council (ASBC) has joined the growing number of organizations opposing the construction of the Keystone XL oil pipeline that would stretch from Alberta, Canada to the Texas Gulf Coast. If you would like to oppose the pipeline, ASBC has set up a page to do so in less than a minute.

From U.S.D.A.: The U.S.D.A. presents the U.S. Cluster Mapping Website, a new tool that can assist innovators and small business in creating jobs and spurring regional economic growth. The site provides cluster initiatives and other economic development organizations an opportunity to register in a national database.

From the White House: Disability.gov has a bunch of resources for the disabled who want to be their own boss.

From the Federal Reserve of San Francisco: The SF Fed produced a new volume of Community Investments – Income Inequality’s Impact on Community Development including a piece by former Labor Secretary Robert Reich.

New Book: Former CAMEO C.E.O, Catherine Marshall, has written a book – Field Building: Your Blueprint for Creating an Effective and Powerful Social Movement. Field Building walks you through the complex tasks associated with launching and building a social movement, and provides the step-by-step guidance to ensure that your effort takes root-and takes off. It also provides real-life examples and points you to further resources you’ll need as you grow your movement. Congratulations Catherine!

Filed Under: Must Know

Capacity Building Grants for Consulting

November 3, 2011

From Friedman Associates…

Capacity Building Grants for Microenterprise Development Organizations
Funded by the U.S. SBA PRIME Program

Capacity building is often defined as “actions that improve nonprofit effectiveness.” Thanks to the SBA PRIME Program, nonprofits that help low-income individuals start and expand small businesses can apply for assistance to increase capacity and impact.

Note: these grants do not include a monetary award but instead offer pro bono consulting worth $15,000. Selected organizations must provide an in-kind match of staff time devoted to the project plus up to $1,000 to defray the cost of travel expenses for the consultant’s site visit.

1. Consortium for Leaders in Women’s Microenterprise Development

Administered by Women’s Initiative for Self Employment with assistance from Friedman Associates.

Women’s Initiative is one of the largest organizations in the country helping low-income women build successful businesses. Four organizations that serve primarily low-income women entrepreneurs are eligible to receive capacity building assistance. This includes: strategic planning; fund development training; board development training; volunteer program management; messaging and external communications strategies; and program assessment and design, among other services.

Download the WI SBA PRIME Capacity Building Application 2012. E-mail the application to Liz deRenzy and Jason Friedman. Applications are due on November 29th.

2. Academy for Green Microenterprise Development
Administered by Access to Capital for Entrepreneurs/Georgia Green Loans with assistance from Friedman Associates

ACE is an award-winning CDFI and microlender that has developed a statewide platform for green small business lending. Seeking to develop a green microenterprise development training or lending program? On a competitive basis, two Microenterprise Development Organizations (MDOs) that serve low-income individuals will be selected to learn how to teach the “the triple bottom line” to their clients. ACE will work with you to develop a strategic plan for your green program. We will also connect you to resources and program materials to help you create your initiative.

Download the application. Please return it by: November 30, 2011 to penney@aceloans.org.

3. MicroBuilders Capacity Building Program
Administered by Little Dixie Community Action Agency with assistance from Friedman Associates.

Little Dixie CAA is an award winning organization providing a broad range of economic and community development programs. Four organizations that serve primarily low-income entrepreneurs are eligible to receive capacity building assistance. This includes: strategic planning; fund development training; board development training; volunteer program management; messaging and external communications strategies; and program assessment and design, among other services.

Download the LDCAA SBA PRIME Capacity Building Application 2012. Please return it by: November 30, 2011 to
space@litledixie.org and jasonj@friedmanassociates.net

Filed Under: news

Small Business Statistics

November 2, 2011

Small Business is the Heartbeat of the US Economy
Source: U.S. Small Businesses Administration
Small firms:
• Represent 99.7 percent of all employer firms.
• Employ just over half of all private sector employees.
• Pay 44 percent of total U.S. private payroll.
• Have generated 64 percent of net new jobs over the past 15 years.
• Create more than 50 percent of nonfarm private gross domestic product (GDP).

Consumers Shop Main Street to Save Their Local Economies
Source: The American Express OPEN Small Business Saturday Consumer Pulse (July 2011)
• 93% of US consumers believe it’s important to support the local small businesses that they value in their community
• 87% believe that small businesses are a critical element of the overall U.S. economic health
• 89% agree that locally-owned, independent businesses contribute positively through taxes and jobs
• 73% consciously shop at small businesses in their community because they do not want them to go away

Small Business is the Golden Ticket to Job and Income Growth
Source: American Express OPEN Independent Retail Index (September 2011)
If independents regained their 1990 market shares, entrepreneurs could create 200,000 new small businesses, generate nearly $300 billion in revenues in the retail and restaurant sectors and employ more than 1.6 million American workers.

Business Owners are Optimistic about their Businesses Future
Source: The American Express OPEN Small Business Monitor and Optimism Review
In the spring of 2011, 49 percent had a positive view of the economy, while 48 percent held a negative view, for a net optimism score of just +1. Additionally, more business owners said they thought sales over the next six months would be higher compared to a year ago (50% vs. 39% in 2010).

Buy Local Campaigns Boost Small Business Sales
Source: Institute for Local Self-Reliance
• Independent retailers that are in communities with a “buy local” initiative reported revenue growth of 5.6% on average in 2010, compared to 2.1% for those elsewhere.
• Independent retailers that are in communities with a “buy local” initiative saw a 5.2% increase in holiday sales in 2010, while those elsewhere reported an average gain of 0.8%.
• More than half (55%) of business owners that live in cities with an active “buy local” initiative said that the campaign made existing customers more loyal.

Customers are Vital for Small Business Survival
Source: The American Express OPEN Small Business Monitor (fall 2011)
• 48% of small business owners say what they need most to stay afloat through the recession is “more customers” compared to tax cuts (25%), access to capital (9%) and the ability to hire more employees (7%).

Filed Under: news
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